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Measuring the Impact of a BSE Announcement on U.S. Retail Beef Sales: A Time-Series Analysis

Author

Listed:
  • Crowley, Christian S.L.
  • Shimazaki, Yoshiaki

Abstract

On December 23, 2003, Agriculture Secretary Ann M. Veneman announced that the United States Department of Agriculture had diagnosed the first U.S. case of bovine spongiform encephalopathy (BSE), commonly known as “mad cow disease.” This study uses supermarket sales data to analyze the effect of the BSE announcement on U.S. retail beef sales, finding a statistically significant disruption of sales. In addition, we develop a forecast of retail beef sales revenues in the hypothetical absence of BSE. The forecast implies that the BSE announcement may have reduced domestic retail beef revenues in excess of $11 billion in the post-BSE period.

Suggested Citation

  • Crowley, Christian S.L. & Shimazaki, Yoshiaki, 2005. "Measuring the Impact of a BSE Announcement on U.S. Retail Beef Sales: A Time-Series Analysis," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 23(1), pages 1-22.
    • Handle: RePEc:ags:jloagb:59609
    DOI: 10.22004/ag.econ.59609
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    Citations

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    Cited by:

    1. Chantal Toledo & Sofia Berto Villas-Boas, 2019. "Safe or Not? Consumer Responses to Recalls with Traceability," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 519-541, September.
    2. Zarebanadkoki, Samane & Zheng, Yuqing & Woods, Timothy & Buck, Steven, 2016. "Examining the Effect of Food Recalls on Demand: The Case of Ground Beef in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236112, Agricultural and Applied Economics Association.
    3. Wolfram Schlenker & Sofia B. Villas-Boas, 2009. "Consumer and Market Responses to Mad Cow Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1140-1152.
    4. Moghadam, Arian Khaleghi & Schmidt, Claudia & Grier, Kevin, 2013. "The impact of E. Coli O157:H7 recalls on live cattle futures prices: Revisited," Food Policy, Elsevier, vol. 42(C), pages 81-87.
    5. Wolfram Schlenker & Sofia B. Villas-Boas, 2009. "Consumer and Market Responses to Mad Cow Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1140-1152.

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